This is according to Mr. Bismarck Rewane, the foremost economic analyst and managing director of Financial Derivatives Company Limited.
Speaking in an interview on Sunrise Daily, Mr. Rewane observed that Nigeria has few rail points that run through only a few states, thus excluding many Nigerians from benefiting from this initiative.
He said:
He added that if the government extended the initiative to include road transport, like was done in 2023, it would have a far-reaching impact.
The Federal government recently announced 15 days of free train rides for Nigerians starting from December 20, 2024, to January 5, 2025.
According to Minister for Information Mohammed Idris, the move would reduce financial pressures on Nigerians during holiday travels, especially since the removal of the fuel subsidy had triggered increases in transportation fares.
Speaking further on the impact of this initiative, Rewane pointed out that the initiative does not address fundamental issues that affect the standard of living, and once the Yuletide festivities are over, the inflation reality would catch up with Nigerians again.
He said:
Meanwhile, TimesNow.com.ng earlier reported that Nigeria’s headline inflation rose to 34.6% in November, up from 33.8% in October 2024, according to the Consumer Price Index (CPI) report.
According to a report recently released by the National Bureau of Statistics, food inflation rose to 39.93%, sustained by increasing prices in tuber crops and grains.
Nigeria’s inflation rate rose consistently for months up to June 2024 before slightly declining in the next two months.
Source: TimesNow.com.ng
